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Entrepreneurship as the safe option: Evidence from India

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  • Borchhardt, Geoffrey
  • Sorenson, Olav

Abstract

We examine the returns to entrepreneurship in India. We find that entrepreneurs, on average, earn more than they would expect in paid employment. Except among the most highly educated, that positive effect holds for every subgroup of entrepreneurs, from the growth-oriented to the self-employed offering personal services. Further analysis reveals that this positive effect appears to stem almost entirely from the fact that entrepreneurs in India have more stable income streams, they have fewer months with no income. Entrepreneurship may therefore represent a safer option for these individuals.

Suggested Citation

  • Borchhardt, Geoffrey & Sorenson, Olav, 2022. "Entrepreneurship as the safe option: Evidence from India," SocArXiv t68du, Center for Open Science.
    • Handle: RePEc:osf:socarx:t68du
    DOI: 10.31219/osf.io/t68du
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